THAILAND REGIONAL AND PROVINCIAL PRODUCT

1. THAILAND REGIONAL AND PROVINCIAL PRODUCT 16 March, 2010 Beijing, China National Accounts Office, National Economic and Social Development Board : THAILAND

2. Thailand • 513,115 Sq.Km. • 7 regions • Northern : 17 provinces • North eastern : 19 provinces • Southern : 14 provinces • Eastern : 8 provinces • Western :6 provinces • Central : 6 provinces • Bangkok Metropolis and vicinities : 6 provinces • 76 provinces National Accounts Office, National Economic and Social Development Board : THAILAND

3. Gross Provincial Product : GPP • National accounts for the country 3 approaches : Production, Expenditure and Income • GDP estimation via the production approach is necessary for the country. • Top-down approach is used to disaggregate VA of each activity of the country level to regional / provincial level. • GPP estimation normally bases on 2 methods National Accounts Office, National Economic and Social Development Board : THAILAND

4. First method • Use only for agricultural sector • Because of basic data is relatively perfect • Production, price are available in provincial level • But intermediate cost structures are available in regional level • Compute VA of each agricultural commodity at regional level and then disaggregate to provincial level • VAregioni = GOregioni - ICregioni • VAprovince j=VAregionixProd. ratio ij National Accounts Office, National Economic and Social Development Board : THAILAND

5. Second method • Use for all commodities in other sector • No have data on production, price and intermediate consumption at regional and provincial level • VA of each commodity at the country level are disaggregated to each province by proportion of relative production indicators to the country • VAprovince k=VAcountryxProd. Ratiok National Accounts Office, National Economic and Social Development Board : THAILAND

6. GPP & GRP presentation • ISIC rev. 3 has been used • 16 economic sectors (exclude: Extra-territorial organization) • Current prices • Constant prices at 1986 prices • GRPi= sum of GPP in region i • Population and per capita GPP are presented • 13 months lag for dissemination National Accounts Office, National Economic and Social Development Board : THAILAND

7. Problem • It’s not technically perfect • Because of • Not reflect prices in difference region / province • IC is same proportion in every region / province • Accounting system can not be completed due to unadequate data • Many activities do not have a clear boundary, producing places and marketing spots are far away from each other. • Transportation : mobile from one boundary to another, railroad • Electricity generating, marine fishery, mining in the sea • Mobile phone National Accounts Office, National Economic and Social Development Board : THAILAND

8. Bottom-up approach • In order to get the economic situation in each area correctly. • Since 2004: NESDB encourage each province (exclude BKK) to do GPP for themselves. • NESDB provide GPP concept and compilation methodology to local agency’s staff. • Little by little of quality of GPP-Bottom up are observed. • NESDB still publicizes GPP officially (Top down). • GPP statistics of each province can be utilized for his own provinces in term of primary economic report. National Accounts Office, National Economic and Social Development Board : THAILAND

9. Problem of Bottom-up approach • Incomplete of data collection • Hard to get data in some activity eg. Trade: head office locate at BKK , the branch which in another province no have accounting data • Very often changing the local staff who are responsible for GPP compilation • Budgetary constraint National Accounts Office, National Economic and Social Development Board : THAILAND

10. Thank you www.nesdb.go.th National Accounts Office, National Economic and Social Development Board : THAILAND